The most common method available to foreign investors setting up in Qatar is to incorporate a Limited Liability Company (LLC).
Currently, the law states that most Limited Liability Companies must have one or more local Qatari partner(s). The local partners shareholding should be a minimum of 50% in the LLC. In most cases however, a 51% shareholding will be held by the Qatar partner.
More Information about LLC’s:
- In order to operate as an LLC, a minimum share capital of QR 200,000 must be available
- Unlike a branch office, an LLC can carry out an unlimited number of contracts simultaneously
- It is mandatory for an LLC to have a suitable office space prior to obtaining a Trade License
- Corporation tax is 10% on the profits of the company
- The profit share for the company does not need to reflect that of the shareholding
QFC – 100% Foreign owned companies
QFC Has recently opened its doors to more “non-regulated” companies, allowing them to establish as a 100% foreign owned company. The QFC now offers not only an alternative to having a local Qatari partner but it also offers a simple and affordable alternative.
There are 6 new categories, which can establish under the QFC. One of those is “the business of providing professional services including but not limited to audit, accounting, tax, consulting and legal services”.
QFC have been “broadening its interpretation” of “professional services”. Last March QFC approved a list of 17 additional activities, which can be included, which are:
- Information technology consultancy activities
- Advertising agencies
- Architectural activities
- Engineering design activities for industrial process and production
- Engineering related scientific and technical consulting activities
- Environmental consulting activities
- Media representation services
- Translation and interpretation activities
- Urban planning and landscape architectural activities
- Logistics Planning and Consulting
- Project Management
- Marketing and Brand management
- Specialised design activities
- Event management services
- Estate planning and will writing
- Activities of patent and copyright agents: other legal activities not elsewhere classified
However these 17 additional activities are not exclusive in that basically QFC will consider any “professional service” – anything qualified as business to business it sees as falling within the category and potentially permissible. What the QFC will not consider as a non-regulated activity is construction, manufacturing, import/sale of goods or labour intensive services.
If you are looking to establish a Limited Liability Company in Qatar. We would recommend having a free consultation with us to discuss your options. For further information please click here www.vpqatar.com.